- The British Pound mostly traded in a range with major resistance near 1.2840 against the US Dollar.
- There is a crucial bearish trend line with resistance at 1.2830 formed on the hourly chart of GBPUSD, acting as a hurdle for more gains.
- Today in the UK, the CBI Industrial Trends Survey Index for April 2017 released by the Confederation of British Industry posted a decline from 8 to 4.
GBPUSD Technical Analysis
The British Pound traded mostly positive against the US Dollar, and remained above 1.2750. However, the GBPUSD pair was also seen struggling to clear a major resistance near 1.2840.
At the moment, there is a crucial bearish trend line with resistance at 1.2830 formed on the hourly chart. The highlighted trend line acted as barrier on more than four occasions.
The pair recently failed near 1.2832, and now trading below the 50% Fib retracement level of the last wave from the 1.2772 low to 1.2832 high.
GBPUSD Hourly Chart
The last few candles are bearish, suggesting more losses, but there is a bullish trend line at 1.2780 waiting to provide support.
Moreover, the 76.4% Fib retracement level of the last wave from the 1.2772 low to 1.2832 high at 1.2786 may also provide support.
The hourly RSI of GBPUSD is attempting to break the 50 level, which is a bearish sign.
CBI Industrial Trends Survey
Today in the UK, the CBI Industrial Trends Survey Index for April 2017 was released by the Confederation of British Industry. The forecast was slated for a decline from the last reading of 8 to 5 in April 2017, compared with the previous month.
However, the actual result was on the lower side, as the CBI Industrial Trends Survey Index declined from 8 to 4 in April 2017.
However, the report showed a few positive signs, as it mentioned that domestic orders had improved at the fastest pace since July 2014 in the three months to April.
Another important mention was about output growth, which grew further and was near three-year high and is further expected to gain ground over the next quarter.
Overall, there is a chance of a minor decline in the GBPUSD pair, but the 1.2780 and 1.2770 support levels may hold the downside.